|
Analyst lowers estimates for Pilgrim’s, Sanderson
Story Date: 2/9/2012
| |
Source: Lisa M. Keefe, MEATINGPLACE, 2/8/12
Higher feed cost assumptions and lower price projections have resulted in reduced estimates by BB&T Capital Markets analyst Heather Jones. In the wake of slacking demand, Jones has lowered her estimates for both Pilgrim’s Pride Corp. and Sanderson Farms Inc.
“We have taken our FY'12 estimate to $0.27 from $0.48 to reflect lower pricing assumptions, higher feed cost projections and a higher share count, which was not entirely offset by lower interest expense,” she wrote about Pilgrim’s Pride.
She also lowered the Sanderson Farms Q1 EPS estimate to a loss of $0.03 from income of $0.27. “Our full-year estimate goes to $2.67 from $4.35, reflecting higher feed cost assumptions, as well as lower price projections,” she wrote. “We estimate that the average big-bird producer was profitable beginning in December, but we believe that [Sanderson] did not attain profitability until January as its processing costs at Kinston [N.C.] may still be higher than average.”
Jones also reiterated the probability of further production cuts if industry fundamentals do not improve considerably in the coming weeks.
"Unless margins considerably improve over the next 1 to 2 months, further cuts are required and are likely as current margins do not afford the balance sheet repair that is required by many in the industry,” Jones wrote in today’s reports.
For more stories, go to http://www.meatingplace.com/.
|
|
|
|
